Yeah, definitely this. Nintendo is also kicking off a huge ad campaign (I've seen it all over YouTube and TV), and it seems their big push for Holiday 2020 is...hardware. All of these ads highlight the actual consoles, with a focus on the Switch Lite. Existing games like Animal Crossing, BOTW, and Mario Maker are featured, and it's all very much tailored to millennial/Gen X parents who want to play nostalgic games with their kids. It feels like the strategy for the rest of the year is to Just Sell Systems, which after the buzz surrounding Animal Crossing and the general strong track record of the Switch so far kind of makes sense. I think if the Mario Collection is coming in 2020 then that lines up with this strategy pretty well, as it's more nostalgia that they can use to pull in casual gamers.
I get it, anyone who spends their time on a gaming message board is definitely not a "casual gamer", so this strategy feels crazy to all of us here. But Animal Crossing is legitimately huge with an unheard of tail/staying power, and if they can sell a system to someone who is only going to get a couple of first-part games, that feels like an obtainable strategy for Nintendo, especially in the year of Covid where completing projects from home makes things a lot more difficult.
Smash Ultimate is arguably their least "casual" franchise, at least how the fans see it, and revealing more fighters probably doesn't really get them that much closer to selling more Switches. We may be in for a long winter, folks...